Vanuatu has signed a deal in Brussels for more than 38 million US dollars in aid from the European Union.
Under the arrangement, signed by Vanuatu's foreign minister Sato Kilman, and the EU commissioner, Neven Mimica, Vanuatu becomes the first Pacific ACP country to benefit from the latest, multi-year, European Development Fund.
The amount is a significant lift from the previous EDF, under which Vanuatu received 23 million US dollars.
Mr Mimica says he was reassured by the govenment's commitment that rural development will be the focus.
He says he hopes the aid will contribute to a tangible improvement in livelihoods and jobs in rural areas and the outer islands, helping to fight poverty and limit urban drift.